Is Yelp, Inc. overvalued or undervalued?

As of 8 May 2025, Yelp, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 16, a Price to Book Value of 3.25, and an EV to EBITDA ratio of 8.70. In comparison to its peers, Yelp's P/E of 15.42 is higher than IAC, Inc.'s P/E of 8.83, but lower than Ziff Davis, Inc.'s significantly higher valuation.
Despite a fair valuation, Yelp's recent stock performance has been underwhelming, with a year-to-date return of -11.71%, contrasting sharply with the S&P 500's gain of 2.44% over the same period. This suggests that while the company is not overvalued, it may face challenges in the near term that could impact its market perception.